# The Real Estate Investment Trusts (Joint Ventures) Regulations 2006, Regulation 3: Conditions


(1) The conditions are as follows.
Condition 1
The venturing company is carrying on a joint venture with another person.
Condition 2
The joint venture takes the form of a company.
Condition 3
The joint venture company is carrying on a property rental business as defined in section 104.
Condition 4
The venturing company is beneficially entitled to 40% or more of the profits available for distribution to equity holders in the joint venture company.
Condition 5
The venturing company is beneficially entitled to 40% or more of the assets of the joint venture company available to equity holders in the event of a winding up.
Condition 6
The property rental business carried on by the joint venture company does not involve property that would fall in accordance with generally accepted accounting practice to be described as owner-occupied.
Condition 7
The joint venture company would satisfy Conditions 1 and 2 in section 108 (conditions for balance of business) if references in that section to—
(a) the “tax-exempt business” were references to the joint venture company’s property rental business, and
(b) the “company” were references to the joint venture company.
(2) For the purposes of Conditions 6 and 7, owner-occupied property includes property held by the joint venture company and occupied by the venturing company.

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Source: https://www.legislation.gov.uk/uksi/2006/2866/regulation/3 (the official version)
Page: https://openlegislation.uk/real-estate-investment-trusts-joint-ventures-regulations-2006/regulation-3
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.